Criminal Tax Media Releases


RELEASED: July 5, 2001

RICHARD J. BASUEL SENTENCED TO JAIL & FINED $30,000

Tax Director Marie Okamura announced that Richard J. Basuel of RB Tax Service was sentenced today by Circuit Court Judge Reynaldo B. Graulty to 6 months incarceration, 5 years probation and fined $30,000.00.

In connection with a plea agreement, Mr. Basuel could have been sentenced to a jail term of 3 years and fined $100,000 for his "no contest" plea for his preparation of six false State of Hawaii income tax returns by claiming Hawaii as a foreign country and overstating his clients itemized deductions.

The most egregious violation committed by Mr. Basuel involved the preparation of amended State of Hawaii income tax returns for his clients by claiming the foreign earned income credit.  The foreign earned income credit is a legitimate credit if a taxpayer did in fact reside in a foreign country for a period of 330 consecutive days in a calendar year.  Mr. Basuel claimed his clients who resided in Hawaii were eligible for the credit because Hawaii is a foreign country and not a part of the United States.
   
Last year, other persons, namely Richard J. Basuel II, Dina Caleda and Rosalinda DeGuzman were also charged with multiple felony tax violations and they have all pleaded "not guilty" and are scheduled for trial in the coming months.   

Tax Director Okamura continues to encourage taxpayers to voluntarily file their tax returns.  The department will generally not initiate a criminal investigation when taxpayers voluntarily come forward to report their failure to file or other omissions. 

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